621 Credit Score - Good or Bad? (2018 Update)

If you plan on applying for a new credit card or loan, there is one important piece of information that determines if your application is
approved or denied:

Your Credit Score.

So many people check their credit score, only to end up with a 3 digit number that they have no understanding of.

Helping you understand it.

My goal here is to help you understand what your score means for you, how it's calculated, and if it needs some improvement.

621 Credit Score - Is it Good or Bad?

SHORT ANSWER

621 is a Poor Credit Score!

Any credit score in the 550-649 range is generally considered “Poor”.

Excellent Credit: 750 - 850

Good Credit: 700 - 749

Fair Credit: 650 - 699

Poor Credit: 550 - 649← You Are Here

Very Poor: 549 and below

A "Poor" credit score is typically considered high risk, or "subprime". Without a co-signer, it will likely be difficult to obtain a loan or
credit line. You may be able to obtain credit, but the rates will likely be much higher when compared to someone with a "Good" credit score
(above 700).

Any score below 700 could use some improvement. If you want some
of the best rates and terms lenders have to offer, you need to work on raising
your credit score to at least 725, which is well within the “good” range.

How Does a 621 Credit Score Rate?

Most credit scores including FICO and VantageScore range from 300-850, the higher the better. Within that range,
there are different categories, ranging from bad to excellent. Here's a general idea of the ranges and their "ratings".
Your range will be indicated below.

Credit Cards with a 621 Credit Score

You should be able to get a credit card with almost any credit score.

The question is: what type of card will you qualify for?

With Poor Credit: You can still get a credit card. However, you may be limited to a secured credit card that requires a security deposit.

This deposit is often equal to or greater than the amount you can charge, and the credit-card company can take your deposit if you don’t pay your bill. If you do
qualify for an unsecured card that doesn’t require a deposit, your credit limit will probably be very low.

Here's a screenshot from NerdWallet's Best Credit Cards For Bad (Poor) Credit:

The good news:

It's likely you will be eligible for decent credit cards with a 621 credit score.

The bad news:

They will most likely need to be secured credit cards which typically have a very low spending limit, and a deposit is required.

What does "Poor Credit" mean to you?

Consumers with credit scores below 650 are generally considered high risk
borrowers - subprime in other words. A score in this range makes it difficult to get approved for low interest loans or low cost insurance.
Bottom line - without a co-signer, many lenders could deny your credit application based on your score.

New credit accounts such as auto loans or mortgages are still available to you, but you will probably end up with much higher interest rates on
these loans with a "Poor" credit score than if you had a "Good" score.

Don't Fret, you can do it

Don't worry though, with some time and effort you can improve your credit
score. If you could raise your score to 700+ points, your credit could then be labeled as "Good" which
would enable you to obtain much more attractive loan and credit card offers, which could save you thousands of dollars in interest.

Short Credit History?

If your score is low due to a very short credit history, you may need a co-signer if you're looking to obtain a loan. Once you have a good
payment history on your credit report (on time, every month) for at least a couple years, you will be well on the path to "Good" credit.
Responsible credit card management will be a huge help as well.

To Much Credit Card Debt?

If your Poor credit is a result of too much credit card debt, then it's up to you to remedy the situation. Ideally you want to keep your credit
card debt below 25% of your total credit line.

How Is A Credit Score Calculated?

While exact details of how your 621 credit score was calculated is an industry
secret, we do know that credit scores are formulated using many different pieces of data from your credit report. This data
is grouped into
five categories as shown below. The percentage to the right of each one indicates how important it is
in determining your credit score.

Payment History - 35% - This is typically the first thing a potential lender will want to know.
Have you paid your past accounts on time? Have you missed any payments?

Total Amounts Owed - 30% - How much you owe on each of your credit accounts. Higher amounts
does not necessarily mean you are high risk, other factors are considered as well.

Length of Credit History - 15% - Generally a longer credit history will yield higher credit
scores. But that's not always the case, it also depends on how often you use your credit, and how responsibly
you manage your debt.

Types of Credit in Use - 10% - Credit score providers will consider the mix of credit accounts
you have, such as credit cards, retail accounts, auto loans, mortgages etc.

New Credit - 10% - Lenders want to know if you've recently been applying for many credit
accounts in a short period of time. That can often represent a greater risk to the lender.

Different Credit Score Range Scales

There are many credit scores available to lenders, most use FICO scores, but even those can vary in how
they are calculated depending on the version being used. Lenders can also create their own credit score ranges, or
use industry specific credit scoring models such as those geared towards mortgages or auto loans.

Here's a quick look at the various credit scoring models and the range they use:

FICO Score: 300-850

VantageScore 3.0: 300–850

VantageScore (versions 1.0 and 2.0): 501–990

PLUS Score: 330-830

TransRisk Score: 100-900

Equifax Credit Score: 280–850

As you can see, having a 621 TransRisk score isn't nearly the same as a 621 FICO score.
For that reason, it's also important to know which scoring model is being used to determine how "good" or "bad" your credit really is.

Some of the questions you probably have are: Is 621 a good FICO Score? Is
621 a bad FICO Credit Score? Is a FICO Score of 621 good or bad?
What does a FICO Score of 621 mean?
What does a 621 FICO Score mean?

Knowledge Is Power - Especially With Your Credit

Did you know if you've received just 1 credit score of 695, you've only seen 16% of your credit data!

You actually have 3 credit scores based on 3 different credit reports. That's 6 different items which are very important for you to have.

Not having access to 100% of your credit data leaves you vulnerable to credit reporting errors, credit fraud, and identity theft.

Make sure you have access to all of your credit scores and reports, I recommend my favorite premium service:
IdentityWorks. With IdentityWorks, you get
all 3 credit scores & reports, and daily monitoring of your 3 credit reports, with alerts of key changes to your credit files.

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About Me

I'm , my credit score used to suck. I knew I had to make a change, so I spent many hours learning the ins and outs of credit scores, and in the process, trying out nearly all credit monitoring services available. My goal is to teach others what I've learned along the way. The good, the bad, and the ugly.

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